Data Sources:
Data Sources:Footprint Analytics - Arbitrum Dashboard（https://footprint.cool/ztil）
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Data source: Footprint Analytics -Each Layer 2 TVL ratio
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Data source: Footprint Analytics -Growth trend of TVL by Layer 2
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Arbitrum leading reason analysis
Low cost of technology migration
The Optimistic rollups scheme adopted by Arbitrum is more popular among developers in the short term than ZK rollups, which are more complex schemes. Arbitrum is currently the Layer 2 solution that is most compatible with Ethereum EVM. Developers can easily migrate the existing Ethereum protocol without rewriting the code, greatly reducing development costs and time costs. Therefore, it is more favored by DeFi projects. Prefer to cross-chain to Arbitrum. But in the long run, the network of ZK rollups may have the possibility of catching up with its faster speed and stronger security.
Low gas fee
Since Arbitrum processes 40,000 transaction requests per second, far greater than Ethereum's 15-30 requests, it greatly reduces network congestion, improves speed, and reduces transaction costs. According to external data, the transaction cost of Arbitrum is 1.8 Gwei, while that of Ethereum is 64 Gwei, nearly 36 times that of Arbitrum.
A more open ecological strategy: the blessing of the Degen Dog project
Many people may ask, why is the Optimistic network that also adopts the Optimistic rollups solution not so good? This is due to Arbitrum's startup strategy - before it was opened to the public, it had reached cooperation intentions with more than 400 DeFi projects, and at the beginning of its launch, dozens of projects had been launched simultaneously. This means that users can complete various operations in its ecology. Optimistic, on the other hand, adopts a whitelist mechanism, and only projects that pass the whitelist screening can be deployed on its mainnet.
Because of Arbitrum's loose deployment mechanism, it was not the top DeFi protocol of the regular army that launched Arbitrum's first shot, but various local dogs and mines. Due to the super-high returns of the Tugou project, the participation of various funds is also extremely high, attracting the initial assets and user traffic of Arbitrum.
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Introduction to Arbitrum Ecological Project
Arbitrum is the leader of Layer 2. From the data of Footprint Analytics, it can be seen that the number of its online projects is not very large, only 44, which is not particularly large. Among them, DeFi infrastructure types are the main types, such as DEX, Lending, and Asset.
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Data source: Footprint Analytics -The proportion of various DeFi projects in Arbitrum
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Data source: Footprint Analytics -epilogue
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As an indispensable and important role in the expansion of Ethereum, Arbitrum has already attracted the attention of capital. It received $124 million in two rounds of financing, with a valuation of $1.2 billion. At present, Arbitrum has not issued coins, and the co-founder of its development team Offchain Labs has stated that there is no plan to issue coins in the short term.
References
References
Why Arbitrum and rollups are dominating Ethereum scaling
Arbitrum Launches with Full DeFi Ecosystem Locked and Loaded
Arbitrum is Currently the Leading Layer-2 Solution in Terms of TVL
